Large debt - where to start?

I wouldn't think that just stopping making payments would help you out. It's true that CC companies wouldn't present a settlement deal until you're far behind...but I would suggest not getting to that point if you could at all help it.

I'm also not sure if closing your current accounts was the best option since closing positive entries on your credit report will most likely have a negative effect.

It wouldn't hurt to talk to a bankruptcy attorney even if it's not something you're seriously considering...but just to learn more about the process and how it all works. He/She will be able to look at your specific situation and give you an idea what will work best.

What would it take for you to be able to keep making those payments?

There is nothing wrong with declaring bankruptcy. BK's arent' meant to leave you destitute, it's designed to give you a fresh start. With that said though I would look into settlement first, if that doesn't work out, then consult with a Bankruptcy attorney. Regarding your question, no one will and should give you advice to stop making your payments - however if you do plan on the settlement route, what you need to know is that in order to settle, your accounts will need to be delinquent. You're in a tough spot, but don't get too down on yourself you'll get out of it, there are a lot of people in your exact situation on this forum who have either gone through it or going through it who will offer you good direction and advice on companies. Good luck!

Hi,
I am able to make the proper payments for all but the largest monthly bill of 550. which includes 220 interest per month. This account used to be 0% so the payments where manageable. But now I will not be able to make the complete payment (as of this month). I have called the CC and told them about my situation and if they could help out by removing the interest rate. Given that I am at 9.9% they could not consider extending the 0% offer. So if I make partial payment, it may not satisfy the minimum payment and I will most likely get a late charge. So will there be a difference between making a partial payment and not making any payment if both will trigger a late charge? Thanks for your help in advance.

Partial payments is just money down the drain in my opinion. Debt is at a standstill, you incur fees and late charges, and yes you will trigger a late charge. And if you're barely treading water at 9.9%, then I can almost guarantee after your partial payment your credit card company will spike the rate up making it even more difficult for you.

That is exactly what I am afraid off... :( I just called them again (BOA) to see it they can lower my monthly payment. I was given another phone number to call on Monday to see if they can help. I have a feeling since I have never missed a payment they would not be willing to help. Have been with them since 1999.

Sorry to hear that but I'm sure exactly what you expected. Don't expect any remorse or loyalty from your creditors - there's a reason why they're a trillion dollar industry.

seems drastic to claim bk due to being behind on one cc - I would definately reconsider doing that. not sure what your credit score is but if you have a decent one I would definately not do BK. Most cc's have a hardship dept and will work with you by lowering your apr% and lowering your pymt for 6 months. I have done this with many of mine and even extended it beyond 6 mos. by that time maybe you can pay off some of your other cc's to free up some funds each month. You may need to be 2 or 3 months behind before they will consider this option. Besides, Chapter 7 guidelines are more strict now so you may not qualify for BK.

At this time I have exhausted all other option and would not be able to make minimum payments. Lowering the monthly payments will definitely be a great help. I will call them again to day to see if they are able to help me out. I am keep telling them that my next payment which is on 11/2 is not going to be in full...but they seems not to care since I have been current with them for ever.
Thanks very much for your advise. Will talk to them today.

I called BOA today and explained my situation and got transfered to 3 different department. One department suggested they may be able to give me a payment holiday and them call them back next month and take it from there. Then I got transfered to another department for validation. At this point all they could do was to waive the late fee for this month, given I would not be able to make a payment on time. This would buy me a few weeks of time at the minimum, but would not help me to come up with the full payment. So I specifically asked for their hardship program: They were very nice and professional about it saying "I would only qualify for hardship program if I am delinquent on two payments" I believe it was meant to be "missing two payments". Since I have been on time for now, I do not qualify. However they appreciated me calling them in advance and letting them know what is coming. They also mentioned my account has been updated indicating I have facing financial hardship.
The most interesting part is hearing that "the hardship program is applicable only if you are late/missing payments for 2 months. It is programmed that way and there is no way around it."

Furthermore: The interest rates only go up if payment dates are missed 2 times in a 12 months period.
Hope this information is found useful. At least I know what I am facing. Thank you for all your advise and support. I will update this accordingly.